n NISM Certifications
NSM General NISM
Medium

What does “pure premium” refer to?

Practice question from IC 38 Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Premium sufficient to cover losses only

    Correct answer

  2. B

    Premium charged to marginal members of society

  3. C

    Premium including administrative costs

  4. D

    Premium calculated from the most recent loss experience

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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